NYSE$EGY

VAALCO Energy Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported increased production and sales volumes but decreased realized crude oil prices, resulting in a net income of $0.6 million.

VAALCO Energy, Inc. reported a net income of $0.6 million, driven by increased production and sales volumes, which offset the impact of lower realized crude oil prices. The company maintained a strong balance sheet with a cash balance of $44.8 million and no debt.

  • Exceeded production guidance for the quarter, producing 5,410 net revenue interest barrels of crude oil per day.
  • Sold 631,000 barrels of oil in Q2 2020, compared to 294,000 barrels in Q1 2020.
  • Reported net income of $0.6 million ($0.01 per diluted share).
  • Maintained a strong balance sheet with $44.8 million in cash and no debt.

Headline financials

Total Revenue

$18M

Previous: $25.2M-28.8%
EPS (adj)

$0.09

Previous: $0.13-30.8%
Capital Expenditures

-$20.1M

Previous: -$1.16M-1628.0%
Free Cash Flow

-$19.5M

Previous: -$2.2M-788.0%
Net Income

$596K

Previous: -$1.03M+157.7%
Operating Income

-$966K

Previous: $6.37M-115.2%
Gross Profit

$18M

Previous: $25.2M-28.8%
Cash & Equivalents

$44.8M

Previous: $48.6M-7.7%
Total Assets

$148M

Previous: $202M-26.9%
Stock-Based Comp

$720K

Previous: -$103K+799.0%

Revenue & EPS history

VAALCO · Revenue · Quarterly

$18M

Q2 2020-28.8%vs Q2 2019
Beat estimate in 0 of 7 quarters(0%)
ActualEstimate

Forward guidance

VAALCO anticipates full-year 2020 NRI production to be between 4,700 and 5,000 BOPD, with Q3 2020 production between 4,200 and 4,600 BOPD. Full year 2020 production expense is expected to be $37 to $39 million, and capital expenditures between $10 million and $12 million.

Tailwinds

  • Full year 2020 NRI production range increased to between 4,700 and 5,000 BOPD
  • Sales NRI volumes for 2020 increased in line with production to at an estimated average of 4,700 to 5,000 BOPD.
  • Company expects to continue to take proactive steps to manage any disruption in its business caused by COVID-19 and to protect the health and safety of its employees.
  • There are no remaining material non-discretionary capital expenditures for the balance of 2020.
  • Company intends to manage future capital expenditure levels in view of the existing and expected pricing environment.

Headwinds

  • Third quarter 2020 production is expected to be between 4,200 and 4,600 BOPD.
  • Third quarter production reflects reductions imposed by the State of Gabon in response to production cuts agreed to as a member of OPEC.
  • Third quarter production reflects a planned six-day full field shut-in for scheduled maintenance.
  • Company has incurred higher costs related to proactive measures taken in response to the pandemic.
  • Situation surrounding COVID-19 remains fluid and unpredictable, and VAALCO is actively managing its response and assessing potential impacts to its financial position and operating results, as well as any adverse developments that could impact the Company’s business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.6%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+2.4%

Avg return

30 days after

38%

25 / 65 earnings

Positive

+41.4%

Q1 2018

Best reaction

-25.5%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.0%+6.4%-0.9%
Q4 2025-4.6%-0.2%+2.8%
Q3 2025-4.3%-2.5%-10.9%
Q1 2025-0.3%+3.8%+0.0%
Q4 2024+14.2%+6.3%-11.6%
Q3 2024-3.2%-6.2%-10.9%
Q2 2024+8.4%+2.8%-5.5%
Q1 2024-4.6%-2.2%-6.0%
Q4 2023+23.0%+35.2%+57.2%
Q3 2023-10.2%-7.2%+3.7%
Q2 2023+9.9%+13.1%-1.2%
Q1 2023-9.6%-13.2%-1.4%
Q4 2022-14.4%-15.6%-13.4%
Q3 2022-5.0%+3.7%-8.5%
Q2 2022+4.2%+0.6%-5.2%
Q1 2022+4.4%+1.4%+27.5%
Q4 2021-4.1%-19.6%+9.0%
Q3 2021+17.7%+21.1%-7.6%
Q2 2021-2.6%-10.7%-8.1%
Q1 2021-7.0%+3.7%+19.6%
Q4 2020-6.2%-9.5%-29.5%
Q3 2020+9.6%+26.9%+83.4%
Q2 2020-3.4%+1.7%-8.4%
Q1 2020-6.1%-3.7%+45.3%
Q4 2019-2.3%-27.7%-45.3%
Q3 2019+1.0%+0.0%+1.0%
Q2 2019+0.0%+6.5%+8.2%
Q1 2019-10.9%-25.1%-28.0%
Q4 2018-1.3%-4.3%+3.4%
Q3 2018+3.3%-7.5%-22.6%
Q2 2018-25.5%-12.3%-20.5%
Q1 2018+41.4%+36.0%+107.2%
Q4 2017-3.7%-6.3%-14.3%
Q3 2017-7.1%-3.9%-14.7%
Q2 2017-5.2%-10.0%-16.4%
Q1 2017+8.0%+15.3%-3.1%
Q4 2016-13.7%-11.6%+0.0%
Q3 2016-2.4%-1.9%+13.0%
Q2 2016+1.5%+2.9%+5.8%
Q1 2016-6.6%
Q4 2015+6.0%
Q3 2015-6.0%
Q2 2015+9.7%
Q1 2015-8.3%
Q4 2014-21.4%
Q3 2014-0.4%
Q2 2014+17.0%
Q1 2014-21.6%
Q4 2013+15.4%
Q3 2013+12.7%
Q2 2013+0.2%
Q1 2013-6.9%
Q4 2012-9.7%
Q4 2009-9.7%
Q3 2012-1.8%
Q2 2012-5.0%
Q1 2011-2.9%
Q1 2012-2.9%
Q4 2011+13.7%
Q3 2011-8.3%
Q3 2010-8.3%
Q2 2010+0.5%
Q2 2011+0.5%
Q4 2010+0.5%
Q1 2010+6.1%

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